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The S&P500 index managed to climb its way back up to the 3388 level where resistance has already been established.
Following the market route in September, the equity markets have now been hit by the uncertainty of the US elections and COVID hitting the Whitehouse.
As a result, prices could remain volatile in the near term, at least until some of the dust settles.
We expect the equity index to therefore hover within the 3388 and 3200 levels for the near term.
A breakout off these levels could, however, signal the direction in the near term.
On a weekly basis, prices are bullish, following the strong close after the previous week’s rejection below the 3275 level.
With the possibility of a double top pattern emerging near 3288, a move lower could open the risk for the S&P500 to extend declines further.
However, the 200-day moving average will likely serve as support near the 3112 region.
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